Key benchmark indices edged higher as firmness in European and Asian stocks boosted sentiment. Reserve Bank of India (RBI) governor, Raghuram Rajan, expressed comfort on Wednesday about core inflation and highlighted the narrowing current account deficit in his efforts to boost sentiments after recent sell off in financial markets. However, market gave up strong gains witnessed in early deals after the latest data showed that the wholesale inflation quickened in October. The S&P BSE Sensex was provisionally up 198.45 points or 0.98%, off close to 175 points from the day's high and up about 45 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
Indian stocks snapped seven day losing streak today, 14 November 2013.
Cipla dropped on weak Q2 result. Coal India declined on weak Q2 result. Tata Steel surged after the company reported strong Q2 result. Tata Motors jumped after the company reported its global wholesales for October 2013. Sun Pharmaceutical Industries declined after the company reported Q2 results. Tata Power Company rose after the company reported a turnaround in Q2 September 2013. PTC India jumped on good Q2 result.
European and Asian stocks climbed on Thursday after Federal Reserve chairman nominee Janet Yellen signaled stimulus will be maintained until the US economy improves.
Foreign institutional investors (FIIs) bought shares worth a net Rs 299.70 crore on Wednesday, 13 November 2013, as per provisional data from the stock exchanges.
As per a circular issued evening Wednesday, 13 November 2013, stock markets will remain closed tomorrow, 15 November 2013 on account of Moharram. Bourses had previously declared 14 November 2013 as trading holiday.
As per provisional figures, the S&P BSE Sensex was up 198.45 points or 0.98% to 20,392.85. The index surged 374.59 points at the day's high of 20,568.99 in morning trade, its highest level since 12 November 2013. The index gained 153.87 points at the day's low of 20,348.27 in early trade.
The CNX Nifty was up 67.05 points or 1.12% to 6,056.65, as per provisional figures. The index hit a high of 6,101.65 in intraday trade, its highest level since 12 November 2013. The index hit a low of 6,036.65 in intraday trade.
The total turnover on BSE amounted to Rs 1843 crore, lower than Rs 1910.82 crore on Wednesday, 13 November 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,419 shares gained and 1,071 shares fell. A total of 152 shares were unchanged.
Among the 30-share Sensex pack, 23 stocks gained and rest of them declined. ICICI Bank (up 3.44%), M&M (up 3.54%) and Maruti Suzuki India (up 2.67%), gained.
Tata Power Company rose 1.09% after the company reported a turnaround in Q2 September 2013. The company reported a consolidated net profit of Rs 74.97 crore in Q2 September 2013 compared with net loss of Rs 83.80 crore in Q2 September 2012. The Q2 result was announced during trading hours today, 14 November 2013. Tata Power's consolidated total income rose 9.05% to Rs 8471.78 crore in Q2 September 2013 over Q2 September 2012.
Sun Pharmaceutical Industries declined 1.46% after the company reported Q2 results. The company's consolidated net profit surged 325.63% to Rs 1362 crore on 58% increase in net sales to Rs 4192 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Wednesday, 13 November 2013.
Sun Pharmaceutical Industries (Sun Pharma) said net profit for Q2 September 2012 included a provision of Rs 584 crore towards the generic Protonix litigation in the US. Adjusted for that provision, net profit for Q2 September 2013 is up by 51% over Q2 September 2012.
Consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) rose 57% to Rs 1828 crore in Q2 September 2013 over Q2 September 2012. EBITDA margin was at 44% in Q2 September 2013, same as in Q2 September 2012.
Branded generic sales in India rose 17% at Rs 949 crore in Q2 September 2013 over Q2 September 2012.
US finished dosage sale grew by 74% at $419 million in Q2 September 2013 over Q2 September 2012.
International formulation sales grew by 17% at $79 million in Q2 September 2013 over Q2 September 2012.
Overall international revenues accounted for more than 75% of total revenues in Q2 September 2013.
Dilip Shanghvi, Managing Director of the company said, "The performance of all our businesses exceeded our plans. We continue to develop a differentiated and specialty driven product basket. We also continue to review opportunities to expand and strengthen our global footprint."
Sun Pharma revised upwards its consolidated fiscal year ending March 2014 (FY14) revenue growth guidance to 25% compared to previous guidance of 18-20%.
The company said the revised guidance takes into account the performance achieved in the half year ended September 2013 (H1FY14) as well the risks associated with increase in competition for some products. Guidance is at constant exchange rate, the company added.
In a separate announcement, Sun Pharma said its board approved the scheme of arrangement to spin off the specified therapeutic and investment business undertakings of Sun Pharma Global FZE into the company without any consideration with effect from 1 May 2013. Sun Pharma Global FZE is a wholly-owned subsidiary of Sun Pharma Global Inc., which is a wholly-owned subsidiary of Sun Pharmaceutical Industries.
Tata Motors jumped 5.24% after the company reported its global wholesales for October 2013. The Tata Motors Group global wholesales in October 2013, including Jaguar Land Rover, were 88,881 units. Global wholesales of all commercial vehicles - Tata and Tata Daewoo range -- were 38,067 units.
Global wholesales of all passenger vehicles in October 2013 were 50,814 units. Global wholesales of Tata passenger vehicles in October 2013 were 14,657 units.
Global wholesales for Jaguar Land Rover were 36,157 vehicles. Jaguar wholesales for the month were 7,006 vehicles while Land Rover wholesales for the month were 29,151 vehicles.
ONGC gained 0.75%. The company's net profit rose 2.83% to Rs 6063.86 crore on 9.69% growth in total income to Rs 23897.64 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Wednesday, 13 November 2013.
ONGC's gross subsidy discount rose 11.9% to Rs 13796 crore in Q2 September 2013 over Q2 September 2012. The subsidy discount impacted the profit before tax (PBT) by Rs 11545 crore and profit after tax (PAT) by Rs 7621 crore. ONGC shares the under recoveries of state-run oil marketing companies (PSU OMCs) by allowing discount in the prices of crude oil, PSD kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.
Tata Steel surged 4.57% after the company reported strong Q2 result. The company posted a consolidated net profit of Rs 916.77 crore in Q2 September 2013 as against net loss of Rs 363.93 crore in Q2 September 2012. The result was announced after market hours on Wednesday, 13 November 2013.
Tata Steel's consolidated revenue rose 7.35% to Rs 36645 crore in Q2 September 2013 over Q2 September 2012. EBITDA (earnings before interest, taxation, depreciation and amortization) jumped 54.26% to Rs 3784 crore in Q2 September 2013 over Q2 September 2012.
Tata Steel attributed the turnaround in Q2 September 2013 to steady ramp-up of the Indian operations and improved performance at the European and South East Asian operations.
Mr T V Narendran, Managing Director of Tata Steel India and South East Asia, said: Overall market conditions weakened during the last quarter, exacerbated by heavy monsoons and the credit slowdown affecting our customers. Despite these difficult conditions, we were able to increase deliveries by 18% over last year and increase market share on the back of strong customer relationships, our superior product portfolio and the strength of our distribution network. The rolling facilities of the brownfield expansion at Jamshedpur ramped up to full capacity towards the end of the second quarter. Our greenfield project in Odisha continues to make good progress though there have been some weather related disruptions due to the Phailin cyclone and the subsequent floods. The South East Asian operations have stabilised and should deliver strong performance over coming quarters.
Dr Karl-Ulrich Kler, MD & CEO of Tata Steel in Europe said: The improvement in production continued into the second quarter as our operations stabilised following the restart of the Port Talbot blast furnace. This fed through to a stronger financial performance in the first half, despite margins being squeezed in the September quarter. The investments in our asset base are proving their worth in what continues to be a challenging market. We are focused on maintaining our momentum and will continue to strengthen partnerships with customers by offering them more premium products and services.
Mr Koushik Chatterjee, Group Executive Director (Finance and Corporate) said: The Tata Steel Group continued to maintain its earnings momentum in spite of seasonal weakness in Europe. The year-on-year improvement is evident with a 300 basis points increase in the Group EBIDTA compared to the corresponding quarter of the previous year. The Group cash flows from operations for the quarter were also very strong as we continued to focus on internal initiatives including working capital and spend management. Capital expenditure on the greenfield capacity in Odisha remains the key priority for the Group's capital deployment and we have spent around Rs 4500 crore in the first half on this project. We continue to maintain adequate liquidity levels backed by project financing for the planned capex and track the currency movements to calibrate our hedging policy accordingly.
Tata Steel's cash and cash equivalents as on 30 September 2013 stood at Rs 12779 crore and net debt was Rs 64334 crore. Total liquidity including undrawn credit lines was Rs 17500 crore.
Coal India lost 3.7% on weak Q2 result. The company's consolidated net profit declined 0.83% to Rs 3052.36 crore on 5.57% growth in total income to Rs 17594.28 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Wednesday, 13 November 2013.
Cipla shed 2.07% on weak Q2 result. The company's consolidated profit after tax (PAT) declined 26.6% to Rs 358 crore on 14% growth in revenue to Rs 2463 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Wednesday, 13 November 2013.
Cipla Medpro South Africa (Medpro), a pharmaceutical company, incorporated in South Africa became a wholly owned subsidiary of Cipla on 15 July 2013. Accordingly, the Q2 September 2013 result includes the relevant results of Medpro and its subsidiaries from the date Medpro became subsidiary of the company and therefore the corresponding figures for the previous period are not comparable, Cipla said.
The Q2 September 2012 revenue includes one-time profit share revenues from Escitalopram through the company's US partner. EBITDA (earnings before interest, taxation, depreciation and amortization) declined 19.6% to Rs 564 crore in Q2 September 2013 over Q2 September 2012.
Cipla's domestic revenue rose 11.6% to Rs 1040 crore in Q2 September 2013 over Q2 September 2012. The growth in domestic revenues was largely on account of growth in anti-asthma, urology and COPD therapy segments, Cipla said in a statement.
Cipla's revenue from exports of formulations grew 14.9% to Rs 1219 crore in Q2 September 2013 over Q2 September 2012. Exports of APIs grew 17.7% to Rs 204 crore in Q2 September 2013 over Q2 September 2012. The growth in export revenue was primarily due to growth in anti-retroviral, anti-malaria and anti-allergic segments, Cipla said in a statement.
PTC India jumped 6.5% on good Q2 result. The company's net profit rose 38.75% to Rs 61.84 crore on 12.43% increase in total income from operations to Rs 3140.16 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Wednesday, 13 October 2013.
KEC International surged 8.84% after the company said it has secured new orders aggregating Rs 568 crore in its transmission and cables businesses. The new orders were announced after market hours on Wednesday, 13 November 2013. KEC International's transmission business secured orders aggregating Rs 493 crore from India, Americas, Bangladesh and Saudi Arabia. KEC International's cables business bagged orders worth Rs 75 crore.
IRB Infrastructure Developers surged 6.2% after the company at the time of announcement of Q2 September 2013 results today, 14 November 2013 said that is has good order book visibility for the next two to three years. The Q2 result was announced during trading hours today, 14 November 2013.
IRB Infrastructure Developers' consolidated profit after tax declined 12% to Rs 107 crore on 10% growth in total income to Rs 967 crore in Q2 September 2013 over Q2 September 2012. EBITDA (earnings before interest, taxation, depreciation and amortization) rose 9% to Rs 450 crore in Q2 September 2013 over Q2 September 2012.
The company's order book now stands at approximately Rs 7030 crore out of which Rs 5050 crore worth of order book is to be executed in the next two to three years. This order book gives IRB good visibility for the next two to three years, the company said in a statement.
The headline inflation accelerated to an eight-month high of 7% in October, mainly driven by higher fuel and manufactured goods prices, government data showed on Thursday. Wholesale prices, India's main inflation measure, had risen 6.46% in September. Food prices rose 18.19% year-on-year in October, slower than an annual rise of 18.4% in September. The WPI inflation reading for August was revised to 6.99% from 6.1%.
Reserve Bank of India (RBI) governor, Raghuram Rajan, expressed comfort on Wednesday about core inflation and highlighted the narrowing current account deficit as he sought to reassure investors worried the country would be hit hard in a global market sell-off. Most immediately, he pledged to move slowly if needed in winding down an oil window that provides dollars directly to state-run oil companies, while announcing a bond purchase of 80 billion rupees on Monday to inject liquidity in markets. Both had been key concerns in markets.
The news briefing, announced earlier on that day, was an unprecedented departure for the traditionally cautious central bank. Since taking the helm of the RBI in September, Rajan has pledged to be more communicative and has so far been warmly welcomed by investors.
"It's important that the RBI clarifies interpretation of economic events and the likely direction of economic policies at times of uncertainty so that the market worries about the right things and does not get into a tizzy about the wrong ones. That is my quote today," Rajan told reporters.
"There is no fundamental reason for volatility in value of the rupee," he also said. "At some time, it makes sense to take a deep breath and examine the fundamentals. I hope you all will do that."
Rajan addressed reporters after stronger-than-expected U.S. jobs data last week had sparked concerns about an early end to the Federal Reserve's stimulus, hitting the rupee and sending Indian bonds and shares tumbling, although markets remain well above the levels of the summer lows.
At his briefing, Rajan called food inflation "worryingly high", but said he was comforted by a downward trend in the core consumer price index. Rajan also surprised marketmen by saying the RBI's estimate for the current account deficit for the fiscal year ending in March was $56 billion, the first time in recent memory the central bank has given such a forecast. Rajan also sought to reassure investors worried about the rupee's stability after the RBI has allowed oil companies to source dollars directly in markets instead of a special window provided by the central bank.
That window was opened as an emergency measure by the RBI in late August and was cited as a key reason behind the recovery in the rupee, which is still up 8.8% since its record low in late August. Rajan said the RBI had flexibility in managing the return of oil companies to markets, and would go slow if needed.
In the foreign exchange market, the rupee edged higher against the dollar as comments from nominee for Federal Reserve chair Janet Yellen and Reserve Bank of India governor Raghuram Rajan delivered a two-dose boost of optimism for a currency that had fallen to a two-month low. The partially convertible rupee was hovering at 63.25, slightly stronger compared with its close of 63.30 on Wednesday, 13 November 2013.
European stocks advanced on Thursday, rebounding from two days of losses, after Janet Yellen, nominated to be the next chairman of the Federal Reserve, said the US economy must improve before monetary stimulus is pared. Key benchmark indices in France, Germany and UK rose 0.82% to 0.94%.
Germany's economy lost momentum in the third quarter and France unexpectedly contracted, adding to evidence that the euro region's recovery is flagging. German GDP rose 0.3% from the second quarter, when it increased by 0.7%. The French economy unexpectedly contracted 0.1%.
Asian stocks climbed the most in a month on Thursday while metals gained after Federal Reserve chairman nominee Janet Yellen signaled stimulus will be maintained until the U.S. economy improves. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Taiwan, Singapore, and South Korea rose by 0.2% to 2.12%.
Japan's economy slowed less than expected in July-September and is expected to pick up pace in the current quarter as consumers spend now to beat a tax rise next year, but business investment came in sharply below market forecasts. The 0.5% expansion in July-September compares with the median estimate for a 0.4% increase and followed 0.9 % growth in April-June, data showed on Thursday.
Trading in US index futures indicated that the Dow could rise 35 points at the opening bell on Thursday, 14 November 2013. US stocks rose on Wednesday, sending benchmark indexes to records, as Macy's Inc. led a rally among retailers and investors speculated the Federal Reserve's Janet Yellen will continue the central bank's stimulus policy as chairman.
Janet Yellen, nominated to be the next chairman of the Federal Reserve, said the economy and labor market are performing "far short of their potential" and must improve before the Fed can begin reducing monetary stimulus. A strong recovery will ultimately enable the Fed to reduce its monetary accommodation and reliance on unconventional policy tools such as asset purchases," Yellen, the Fed's vice chairman, said in testimony prepared for her nomination hearing tomorrow before the Senate Banking Committee. "I believe that supporting the recovery today is the surest path to returning to a more normal approach to monetary policy." The remarks show Yellen is committed to the central bank's strategy of attempting to boost the economy and lower 7.3% unemployment, more than four years after the economy began to recover from the longest and deepest recession since the Great Depression. She also signaled support for capital and liquidity rules to help reduce the perception that some banks are too big to fail.
Powered by Capital Market - Live News
